''It would involve building our food-processing industry so that it can supply Asia's growing consumer markets and developing the research, technologies and logistics that strengthen irrigation, grow higher-yield crops and improve safety,'' she said.

Ms Gillard's speech opened a Global Foundation conference - sponsored by The Age- that will focus on the theme ''Australia in the Asian century''.

The Prime Minister wants to ''see a growing national debate and dialogue about the impact of what is happening across our region and about how we, as a nation, should respond. So I welcome this summit and the work of the Global Foundation.''

She said the speed and reach of change in Australia's neighbourhood is unprecedented, with China and India alone forecast to account for 35 per cent of global energy demand. Internet users in Asia and the Pacific have tripled since 2005, from 344 million to more than 1 billion.

''But if you think the change we have lived through already in our region and in our nation is amazing, then, hang on to your hats, because so much more change is still to come,'' she said.

The government's white paper on Asian ties is expected to be delivered mid-year.

Ms Gillard said Australian business must prepare for stiff competition from other countries for chances in Asia, with the dollar likely to stay strong.

''Just as we have become a minerals and energy giant, Australia can be a great provider of reliable, high-quality food.''

She stressed that innovation was key, pointing to law firm Mallesons'', which recently merged ''with a Chinese peer, King & Wood, to create a new legal powerhouse in Asia''.

IMF chief Christine Lagarde last night praised Australia's role in the world economy in a recorded message from the US.